Sensex tanks 487 pts as trade jitters take a toll

Markets wilted under selling pressure for the sixth straight day on Wednesday as investor sentiment remained grim amid U.S-China trade tensions and declining foreign fund inflows.

The 30-share BSE Sensex plunged 487.50 points, or 1.27 per cent, to end at 37,789.13; while the broader NSE Nifty sank 138.45 points, or 1,20 per cent, to 11,359.45.

According to traders, domestic equities tracked weakness in global markets, which have been rattled ever since US President Donald Trump on Sunday threatened to hike tariffs on USD 200 billion worth of Chinese goods this week.

The recent flare-up in tensions between the world's two top economies has sent investors scurrying to safe-haven assets like bonds, gold and the Japanese yen.

A depreciating rupee, mixed corporate earnings and caution ahead of the elections outcome added to the gloom, analysts added.